Goodbye, Chinese students? Hint of a major change coming to international university students in Australia

The government of Prime Minister Anthony Albanese has indicated that it wants to be less dependent on Chinese international students and give foreigners at university an easier path to permanent residence.

International students accounted for more than a quarter of all enrollments in Australia in 2022, with 450,000 foreigners paying fees directly.

These international students’ tuition fees contributed to a fifth of all university funding and constitute Australia’s fourth largest ‘export’ – education – after iron ore, coal and natural gas.

But also the Australian Universities Accord Final Report, released on Sunday by Education Minister Jason Clare hinted that Australia needed to reduce its dependence on it ChinaAustralia’s largest source of international students, which had trade sanctions imposed in 2020.

It recommended the establishment of an Australian Tertiary Education Commission with a view to reducing Australia’s dependence on a small number of countries for international students.

“The report recommends that the Australian Government and the Commission work together to manage demand volatility where possible, including by diversifying markets to avoid over-reliance on a small number of countries,” the report said.

The assessment found that Australia could diversify away from China and towards India, which last year overtook China as the world’s most populous country.

“While China remains Australia’s top two-way trading partner and largest source of international students, India is now the world’s most populous country with the world’s largest youth population,” the report said.

“This presents significant opportunities for Australia.”

The report also suggested that international students should have more opportunities to obtain permanent residency.

“This includes addressing issues associated with ‘permanent temporary’ visa status – where migrants remain in Australia without the opportunity to obtain permanent residency,” the report said.

‘Improving transparency, clarity and communication about Australia’s visa system would improve migration outcomes for international students.’

Under existing rules, international students can buy an existing property in Australia to live in, but they must sell it within six months of graduating and leaving the country.

Permanent residents have no such restrictions and are not required to seek approval from the Foreign Investment Review Board to purchase a property or plot of land.

Nearly two-thirds (65.2 percent) of international students came from Asia, with China, India, Nepal, Vietnam and Indonesia high on the list.

Unlike local students, who can defer their tuition until well after graduation, international students pay in advance, providing universities with a lucrative revenue stream.

The report also recommends that international students seeking a pathway to citizenship courses should obtain graduate employment in an area with a skills shortage, and avoid overcrowded big cities.

“Some international students are looking for a migration path,” the report said.

“In line with the Australian Government’s Migration Strategy objective for a better targeted system, the tertiary education sector should encourage these students to take courses related to Australian skills shortages and study in regional locations.”

Under existing rules, international students can buy an existing property in Australia to live in, but they must sell it within six months of graduating and leaving the country. Permanent residents are not affected by such restrictions (pictured is a real estate seminar in Sydney)

The report also emphasized the need for international students to have better “migration opportunities and positive employment outcomes.”

A record 518,000 permanent and long-term migrants, net, moved to Australia in 2022-23, including international students and skilled migrants.

Nearly a third or 29.5 percent of Australians were born overseas in 2022.

Australia is particularly reliant on foreign immigration to have a working-age population, with people aged 65 and over expected to make up 23.4 per cent of the national population in the 2062-63 financial year.

Although increased migration, including of international students, increases the labor supply, it also increases the demand for housing, leading to higher rents and house prices.

Average house prices in the capital rose 11 per cent to $944,229 in the year to January, compared with a 4.7 per cent rise in regional areas to $621,301, CoreLogic data showed.